Harbor Group International LLC acquired the 820 First Street office building in Washington, D.C., for $107 million. The building’s anchor tenant is the Washington headquarters of CNN (Cable News Network).
The property was purchased from Baltimore-based Greenebaum & Rose Associates. Cassidy Turley served as the seller’s broker for the transaction. Harbor Group International’s investment partners in the property include affiliates of Capstone Equities and Image Capital.
“Washington, D.C. has always been one of the strongest markets for investment real estate,” Jordan E. Slone, chairman & CEO of Harbor Group International, said in a statement. “The abundance of government jobs in the area keeps the economy stimulated. Unemployment and office vacancy rates outperform most other metropolitan areas in the United States.”
820 First Street is an 11-story, 298,533-sq.-ft. class-A office building constructed in 1990 and located across from Union Station, Washington, D.C.’s largest transportation hub, in the Capitol Hill North submarket. The property is 99 percent leased to a creditworthy tenant roster highlighted by CNN, Accenture and various entities of the United States Government.
“The change to institutional ownership should allow for operational efficiencies to be achieved especially in the areas of expense control and staffing,” Slone added. “A capital improvement plan focused on elevator modernization and energy controls should positively affect the Property’s performance and aid the leasing and tenant retention efforts.”